Business Leadership in Advancing Racial and Economic Equity

June 07, 2023

On May 23, the Council for Inclusive Capitalism partnered with PolicyLink to host a conversation on “Business Leadership in Advancing Racial and Economic Equity.” The private sector plays a critical role in accelerating and advancing racial and economic equity. Simply put, business works best when it works for all. Our featured speakers discussed how business leaders and investors can contribute to a healthy labor force, an economically secure consumer base, and a well-functioning society.

Race and economic equity are inextricably linked, as over half of the economically insecure people in the United States are people of color. The business community can be at the forefront change, according to PolicyLink’s director of corporate racial equity, Jocelyn Corbett.

To explore the role of business in advancing equity, Mahlet Getachew, managing director of corporate racial equity at PolicyLink, was joined by Wilma Wallace, chief diversity and social impact officer and chief legal counsel at REI Co-Op. The two discussed the importance of the work of the Corporate Racial Equity Alliance, a collaboration led by PolicyLink, JUST Capital, and FSG, in developing corporate standards which aim to establish a clear understanding of what equity means, set new norms for equity in business, and drive greater disclosure and more effective data reporting. The standards include 10 outcomes of racial and economic equity all institutions have a duty to contribute towards achieving, 18 corporate levers of change, and roadmaps for each lever to help achieve impact.

As REI’s first chief diversity and social impact officer, Wallace noted that advancing equity does not come down to one person – it needs to be a multifaceted effort across the organization. Success at REI is not just measured by profit, but also by measuring how employees are treated, how they support members, and their impact on society. “We all own accountability for racial equity, diversity, and inclusion in our organizations,” said Wallace. “No matter how quickly we want to move and make process, this work takes time.”

Advancing equity is a core priority for the Council for Inclusive Capitalism and our members. In addition to the work of PolicyLink, FSG, and JUST Capital in co-leading the Corporate Racial Equity Alliance to create corporate standards to advance racial equity, Council Allies are providing programs and support to create equality of opportunity and fairness across generations. Wall Street Bound is closing the opportunity gap and creating pathways to success by recruiting and training underrepresented youth for careers in finance. Jeremiah Program is addressing structural inequities and disrupting the cycle of poverty for single mothers and their children by supporting greater access to education, housing, and professional development. BLCK VC equips Black investors with the access, education, and community they need to accelerate their careers in venture capital.

Council Stewards, including Estée Lauder Companies and BCG, are taking concrete actions to reduce barriers and deliver equitable outcomes. Estée Lauder Companies is providing more access to professional development and advancement for Black employees in the U.S. as part of a commitment to reach racial equity in the US in the next five years. BCG is putting $100 million into its talent resourcing to advance equity across racial and ethnic identities facing societal inequality and injustice.

To explore more commitments to reducing inequality, click here.

For more information on this event, please review the presentation, and to receive more information on PolicyLink’s corporate performance standards, please contact Jocelyn Corbett.

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